Guelph Market Update for April 2022

Below you will find a Guelph Market Update for April 2022 which will provide you with information on the local real estate market and recent sales activity in specific Guelph neighbourhoods. Don’t hesitate to contact us if you have any questions or if you are ready to move forward with the next step!

Guelph Market Update for April 2022

Guelph housing inventory doubled in April, but the average sale price continues to climb!

Months of inventory, a statistic that looks at supply versus demand, went above one month of inventory for the first time in 11 months. We saw 1.2 months of inventory in April compared to .6 in March. Six months of inventory is considered a buyers market, so we are still in an extreme seller’s market.

The average sale price went up 3% from last month and is currently sitting just shy of 1 million at $997,435. However, if we look at the breakdown:

Detached houses were almost flat, rising point .2%.
Townhouses fell 8%
Condominiums dropped 10%.

So what really happened is a higher percentage on the sales were detached homes and that artificially pulled up the average sale price.

Other indications the market is cooling are that the number of listings going to multiple offers was 69%, down 7% from March. Also, the number of properties sold this month was down 2% from last month.

Two main factors are contributing to the market cooling. The first is seasonality; more people list in the spring and the increased supply tends to cool down the market as we head into the summer months.

The second factor is interest rates went up 50 basis points in April. According to BOC, another 50 basis points hike in June is expected and the prime rate could continue to climb up to 3% before inflation is under control. Interest rates would be north of 5%, which seems high relative to current rates but is normal.

Buyers will qualify for less of a mortgage with higher interest rates. The bright news is that the number of homes on the market has increased and there are currently 119 homes that have been on the market for more than nine days, reducing the change of them going to multiple offers.

There is more choice, and if you buy soon, you will be locking into a much better rate than you will be six months from now. Immigration will outpace new home builds for the next couple of years, which means you shouldn’t see significant price reductions.

Sellers will have to be more patient in this market. They can’t expect their home to sell within seven days, they may not see multiple offers, and they may have to accept an offer with conditions. But this is still a strong seller’s market, so a good time to sell. If they are selling and buying, it is also a much easier market to do this in; you have to use the right strategy for selling your home.

I am Brad Wylde with GoWylde Real Estate, a group of real estate professionals passionate about helping people grow their wealth through real estate.